Terms of $1.3B Arena Deal with 76ers Revealed by Mayor

The mayor of Philadelphia has shared the details of the recently negotiated agreement with the city’s professional basketball team for the construction of a new $1.3 billion downtown arena.

Under the terms finalized earlier this month, the Philadelphia 76ers will cover the entire cost of the project without requiring any financial contribution from the city. However, a clause in the deal allows the team to make annual payments averaging $6 million instead of paying taxes.

Additionally, the team has agreed to invest $50 million into local businesses, surrounding neighborhoods, and city schools to mitigate the impact of the arena, as Mayor Cherelle Parker explained during a Wednesday night press conference.

“I am truly proud of the decision we’ve made and the agreement we’ve secured, which guarantees that our beloved Sixers will remain here in Philadelphia, where they belong,” Parker said.

The city also made public drafts of the nine bills and two resolutions needed to move the project forward, including provisions that would enable the city to acquire the arena property and adjust zoning regulations.

Parker noted that her administration plans to hold a series of town hall meetings in the upcoming months, allowing residents to express their concerns and engage in discussions about the proposal.

The owners of the team have highlighted their vision for “76 Place,” which aims to revitalize a struggling retail area near City Hall and take advantage of existing public transit infrastructure.

They have also confirmed that they do not plan to renew their lease at their current arena, which was built in 1996 and is located in South Philadelphia, once it expires in 2031.

Despite the team’s ambitious plans, the proposal has faced strong opposition from activists in Philadelphia’s Chinatown, who fear the development could displace residents and local businesses.

Critics argue that the city has not adequately addressed concerns about the potential increase in vehicle traffic through the pedestrian-friendly neighborhood and the risk of forcing out vulnerable groups, including seniors, low-income families, and immigrants.

Parker reiterated her commitment on Wednesday to safeguarding Chinatown, which lies just over a block away from the proposed arena site.

If the project is approved by the City Council, demolition could begin as early as 2026, with construction starting two years after that. The goal is to have the new arena ready in time for the 76ers’ 2031-32 season.